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Netherlands Product Deck

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1 Netherlands Product Deck

2 Contents SA Tourism Mandate, Key Strategic Objectives and Strategy
Overview of Dutch Tourists How many tourists come to SA How do they look for travel information How do they book How to delight them How we attract them

3 Contents SA Tourism Mandate, Key Strategic Objectives and Strategy
Overview of Dutch Tourists How many tourists come to SA How do they look for travel information How do they book How to delight them How we attract them

4 Mandate and Key Strategic Objectives is the Vision for Tourism
The mandate to SA Tourism is ... Sustainable GDP Growth Sustainable job creation Redistribution and transformation Increase in tourist volume Increase in tourist spend Increase length of stay . . . through six key objectives . . . Improve geographic spread Improve seasonality patterns Promote transformation Understand the market Choose the attractive segments Market the Destination . . . by acting in a focused way to . . . Facilitate the removal of obstacles Facilitate the product platform Monitor and learn from tourist experience

5 Egypt, Israel, Morocco, Saudi Arabia, Tunisia,
Fifth Portfolio Review Outcome to be implemented effective 01/04/2014 After Extensive Peer Review process . Africa AMERICAS ASIA & AUSTRALASIA EUROPE & the UK CORE MARKETS Angola Domestic Kenya Mozambique Nigeria Tanzania Brazil USA Australia China India France Germany Netherlands UK INVESTMENT MARKETS Botswana DRC Ghana Lesotho Uganda Zimbabwe Canada Japan South Korea Italy Russia TACTICAL MARKETS Namibia UAE Zambia Singapore Switzerland WATCH-LIST MARKETS Ethiopia Malawi Swaziland Argentina New Zealand Austria Belgium Denmark Finland Norway Spain Sweden Turkey STRATEGIC IMPORTANCE Egypt, Israel, Morocco, Saudi Arabia, Tunisia, Malaysia Responsibility Country Manager Regional Director Stakeholder manager TRM: Global

6 Contents SA Tourism Mandate, Key Strategic Objectives and Strategy
Overview of Dutch Tourists How many tourists come to SA How do they look for travel information How do they book How to delight them How we attract them

7 Consumers: Target Segments Where to Focus: Breakdown of Total Market
To take in account economic changes, the income floors for the target market was revised in The new target market size is of 4.1 million, or about 68% of the previous market estimate Total Number of People in Our Market Segments Who Are Positive about SA 3: Convertible Short-haul 314k 7: Convertible Positive Apathetics 113k 8: Experienced Family Explorers 580k 10: NSSA 399k 11: Senior Explorers 159k 12: Been Theres 178k 9: Wanderlusters 398k Focus Segments = 1,134k = 2,141k Who are in the top 3 social classes (A, Bb, Bo only) 16.3 million (100% of total) Between the ages of 18 and 70 And, who have travelled internationally for leisure in the past 5 years 4.1 million (25% of total) 7.1 million (44% of total) 11.2 million (69% of total) Total Dutch population

8 But there are Two Core Segments in our international leisure focus
The other segment categories are pursued on a tactical or opportunistic basis only. The ‘Next Stop South Africa’ (NSSA) segment The NSSA segment represents our traditional market. They are wealthier experienced international travellers, usually between the ages of 40 and 60 whose children (if any) have left home. They typically look for natural beauty and authentic cultural experiences. They prefer independent or small group travel, and look for luxury and comfort as part of their experience. Safety is a key consideration when choosing a new destination. Safari is a big draw-card when travelling to Africa. The ‘Wanderluster’ Segment The “Wanderluster” segment is made up of younger singles or couples between the ages of 25 and 40 and generally do not have children. They are young urban professionals earning higher incomes, and they already have considerable travel experience. Their desired experience centres on nature, culture and adventure with a strong liking for “urban vibe”. While also concerned with issues of safety and comfort, these consumers are driven more by the emotional appeal of a destination compared to the more practical NSSAs. They are generally more positive about South Africa in every market than any other segment but they also want to travel the world.

9 Behaviour of the Dutch Travellers (1/2) Travel Allows the Dutch to…
Travel allows the Dutch to escape from the routine and discover ‘different’ things; it helps them gain a new perspective on life and allows them to try new activities Behaviour of the Dutch Travellers (1/2) 1 Travel Allows the Dutch to… Break the Routine Be Close to Nature Travel gives the Dutch an opportunity to break away from the shackles of their monotonous routines and seek ‘freedom’ It helps them disconnect from their lives back home and move away from the stick rules and regulation of the Netherlands Travel allows the Dutch to visit destinations with scenic landscape and varied biodiversity It gives them a chance to blend in a natural setting, which is not possible when they are in their homeland Discover Be Active Travel allows the Dutch to discover new things in life—new cultures, people, landscapes and self—instils a sense of achievement and excites them Travel gives the Dutch a chance to do activities that they will not when in their homeland and allows them to have a sense of achievement Go Back to the Basics Lose Inhibitions Travelling to less privileged destinations gives an opportunity to the Dutch to compare lives of local with their lives back home and appreciate it Travel gives the Dutch a chance to break free of the obligations they face on a daily basis and to lose all their inhibitions It gives them the opportunity to be carefree again as they were when they were children Source: Insight Activator Workshop, The Netherlands, 2013

10 They seek destinations where they can interact with locals, see wildlife and stand out-of-crowd; they prefer destinations that give them more for their money Behaviour of the Dutch Travellers (2/2) 2 They Seek Destinations Where They Can… 3 While Planning their Trips, they Seek… Meet the Locals Value for Money The Dutch want to visit countries where they can interact with the locals and learn about them and their way of living, their culture and history The Dutch travel to destinations where they can get more for their money See Wildlife Abundance of Information Ability to view wildlife in their natural environment is one of the experiences the Dutch want to have when travelling Prior to travelling to a destination, the Dutch seek information about the place from various sources Be Important Self-Help While travelling, the Dutch want freedom and special attention They seek hospitality and do not want any inhibitions when travelling The Dutch prefer to plan their holiday on their own 4 They Want to Know More… About South Africa The Dutch have limited awareness about South Africa’s offerings They perceive South Africa as unsafe and expensive, which makes it difficult for them to explore the country Source: Insight Activator Workshop, The Netherlands, 2013

11 Travel is Important for the Dutch, as it Helps them…
Their travel behaviour is further substantiated by their beliefs that travel allows them to discover cultures, relax and break from the routine Travel is Important for the Dutch, as it Helps them… Travel allows the Dutch to learn about different cultures, which gives them a sense of discovery It provides them an opportunity to interact with the locals, know their thoughts and understand their culture Share, and Sometimes Brag Be Close to Nature Try Different Things Travel helps the Dutch escape from their mundane activities and disconnect from work, which recharges their batteries Travel gives them a chance to try new activities that they do not have time to undertake in the Netherlands This energises them and gives them a sense of achievement Travel gives them an opportunity to relax Break from Routine Relax Learn About Cultures Travel allows the Dutch to experience nature from close quarters, which pleases them Travel also gives them a chance to share and at times brag about their experiences among friends and relatives Proximity to the traveller denotes deeper association with travel

12 Holiday Planning for the Dutch Begins with…
They are inspired to visit a destination by their friends, television programmes, the Internet and books; they consider several factors to shortlist a destination Holiday Planning for the Dutch Begins with… Inspiration Prospection Selection The Dutch are inspired to travel to a destination when they: Hear travel stories/experiences from their friends and family members Watch travel related programmes on television or movies or documentaries View pictures and read travel stories in online forums, blogs, travel guides and magazines The Dutch shortlist destinations based on their budget and cost of travel, weather conditions and destination offerings They also take into account the availability of accommodation, accessibility, safety and health risks at the destination They gather information from various sources, with the Internet being the most commonly used source They collect information from search engines, holiday and government websites and blogs They take feedback from their friends and relatives on the destinations They also watch travel programmes and read travel guides and books to get details about the destinations Some travellers consult travel agencies to gather information on destinations and travel offers The Dutch prefer the destinations with unique and different landscapes, warm climate and rich culture and history They prefer destinations with peaceful environment as it helps them relax They select destinations that have varied offerings and are safe to travel They book their trips on their own using the Internet They also make their travel bookings using travel agents, as it leads to organised trips and involves less hassle Travel Destinations

13 Their Perception about South Africa Includes…
South Africa’s rich biodiversity and cultural variety attracts the Dutch; however, they perceive it to be an unsafe and expensive destination Their Perception about South Africa Includes… ‘Dutch Influences’ in South Africa Segregation Biodiversity Unsafe Discrimination No Time Difference Landscapes Income Disparity Culture Expensive Leisure Activities Lack of Information Positive Perceptions Negative Perceptions Proximity to South Africa’s map denotes stronger association of the Dutch with the country Size of bubble indicates relative strength of positive–negative perceptions

14 Performance on Travel Factors Travel Drivers, Barriers and Triggers
They feel enhanced awareness about South Africa’s variety and flexibility in terms of packages, along with reassurance about their safety, would drive them to visit it Performance on Travel Factors Travel Drivers, Barriers and Triggers Drivers The diversity that South Africa offers in terms of flora, fauna and landscapes, and it’s rich culture attracts the Dutch to the country They want to see the ‘Dutch Influences’ in South Africa and feel it offers them an avenue to disconnect from their lives back home Share, and Sometimes Brag Be Close to Nature Try Different Things Break from Routine Barriers Relax However, they feel they would be unable to move freely while in South Africa due to security concerns They perceive South Africa to be a country where discrimination and segregation is common practice, which discourages them from visiting it They also consider the country as an expensive destination Learn About Cultures Triggers The Dutch feel increased promotion of South Africa through effective promotion channels would enhance their awareness and entice them to visit the country They believe reassurance about their safety, flexible package options and greater value for money through promotional offers would make the country attractive for them Proximity to the traveller denotes deeper association with travel South Africa’s Appeal: Positive Neutral Negative

15 South Africa Customer Conversion — Total
South Africa Conversion Curve across waves — Total Do they know us? Closure Ratio (1 in 2.6) (1 in 3.3) (1 in 3.2) (1 in 3.1) (1 in 3.5) Do they like us? Do they collect information about us? Do they come? Nov-11 (n=1,010) 88% 43% 33% 19% 10% 26% 10% Feb-12 (n=1,002) 89% 45% 37% 18% 11% 31% 9% Nov-12 (n=1,001) 89% 44% 33% 18% 11% 28% 9% Feb-13 (n=1,003) 86% 43% 34% 19% 11% 30% 10% Nov-13 (n=1,000) 85% 43% 33% 20% 10% 26% 8% Closure Ratio: Ratio of % of people who have visited the destination in last 18 months to % of people who have gathered the information about the destination in last 18 months Customer Conversion (Based on Q9, Q29, Q14, Q17, Q15, Q16a and Q16b): Based on those that have traveled internationally in the last 5 years; Respondents to likeability limited to quota; Likeability/Positivity, Plan to Gather Information in Next 18 Months, and Plan to Visit in Next 18 Months based on ratings of 6 or 7 on a 7-point scale. Note: For all the questions the percentages are based on total respondents not the awareness base for the destination

16 Contents SA Tourism Mandate, Key Strategic Objectives and Strategy
Overview of Dutch Tourists How many tourists come to SA How do they look for travel information How do they book How to delight them How we attract them

17 Central & South America
Tourist arrivals to South Africa for January to October 2013 grew by 4.0% over 2012 to reach 7,838,833. All regions showed positive growth. Europe 1,168,834 arrivals 6.2% up from 2012 North America 344,409 arrivals 4.4% up from 2012 Middle East 47,581 arrivals 3.1% up from 2012 Asia 358,203 arrivals 9.1% up from 2012 Central & South America 105,039 arrivals 6.3% up from 2012 Australasia 120,694 arrivals 3.6% up from 2012 AFRICA 5,657,449 arrivals 3.3% up from 2012 Indian Ocean Islands GRAND TOTAL 19,243 arrivals 13.1% up from 2012 7,838,833 arrivals 4.0% up from 2012 Note : Tourist Arrivals figures shown above for Jan. - Oct 2013 Source: Table A Tourist Arrivals Jan. - Oct 2013

18 Tourist arrivals to South Africa from Europe, Jan. - Oct. 2013
There was 6.2% increase in tourist arrivals from Europe in this period was mainly contributed by Germany with 30,284 more tourists compared to same period in Netherlands has also seen a growth of 3.2%. Tourist arrivals to South Africa from Europe, Jan. - Oct. 2013 Tourist Arrivals Source: Table A Tourist Arrivals Jan. - Oct. 2013

19 Arrivals from Netherlands January to December, 2009 to 2013
There are clear peaks in July and October in the seasonal pattern of arrivals from Netherlands Arrivals from Netherlands January to December, 2009 to 2013 Source: StatsSA, Tourism & Migration release

20 Netherlands Arrivals by ‘Purpose of Visit’
8 The majority of Netherlands tourists travel to South Africa for general holiday, although the general holiday arrivals have decreased Netherlands Arrivals by ‘Purpose of Visit’ Number of arrivals (Thousands)

21 Most Common Length of Stay
% The average length of stay for a Dutch tourists has declined to 18 nights, with the most common length of stay declining to 4 nights. Length of Stay by Year, 2009–2012 Average Length of Stay Most Common Length of Stay Nights Nights

22 The number of bednights spent in hotels increased in 2012.
8 The number of bednights spent in hotels increased in 2012. Bednights spent in South Africa by accommodation type, 2009 and 2012 Number of arrivals (Thousands)

23 TFDS (excl. capex) from Netherlands increased by 28% in 2012
TFDS (excl. Capex) to South Africa , 2012 Average expenditure in SA – R13,900 Average Prepaid Expenditure – R24,300 ZAR (Mn) Source: SAT Departure Survey

24 Contents SA Tourism Mandate, Key Strategic Objectives and Strategy
Overview of Dutch Tourists How many tourists come to SA How do they look for travel information How do they book How to delight them How we attract them

25 Key Information Sources
The Dutch primarily use the Internet to seek information on destinations, along with their friends and family, television programmes and guides Key Information Sources Internet Word-of-Mouth Television Programmes Guide Books and Magazines Travel Agencies The Internet is the foremost source of information for the Dutch They use search engines, such as Google, to gather information on destinations They also refer to travel portals, blogs and government and weather websites for information on flights, hotels, tourist sites and seasons The Dutch seek information on destinations from their friends and relatives – primarily their travel experiences Once at the destination, they also get in touch with fellow travellers and locals to gather more information about places to visit and activities they can undertake at the destination The Dutch watch travel related television programmes, such as RTL Travel, to get more information on destinations they have shortlisted These programmes provide information related to the landscapes, environment and wildlife, along with some tips for travelling to the destinations Once the Dutch select a leisure destination, they refer to travel guides, such as Lonely Planet, and travel related magazines and books to get more information The Dutch also use travel agencies as a source of information on destinations Travel agencies provide detailed information on the destinations, such as destination’s offerings and accommodation, along with promotional offers Note: 1Order of these slides is based on qualitative assessment of each reason’s importance and its frequency

26 Contents SA Tourism Mandate, Key Strategic Objectives and Strategy
Overview of Dutch Tourists How many tourists come to SA How do they look for travel information How do they book How to delight them How we attract them

27 The Dutch Primarily Book through...
The Dutch primarily book their travel through the Internet; however, they also book through travel agencies and at times directly with airline companies and hotels The Dutch Primarily Book through... Internet Travel Agencies Direct Booking The Internet is the preferred booking channel for the Dutch as it gives them freedom of choice They use the Internet to seek information on low priced tickets and accommodations through price comparison websites such as Expedia They prefer the Internet as its faster than contacting travel agencies The Dutch, especially NSSAs, use travel agencies to book their travel tickets and hotels They prefer to book through agencies when they travel alone, visit an unknown destination or have ‘less’ time to plan their travel The Dutch book through agencies since they provide ‘expert advice’ and help plan the travel Wanderlusters are willing to pay a ‘little’ extra for these services The Dutch also book their travel tickets and accommodation directly with the airline companies and hotels At times, they opt for ‘on the spot’ bookings since it saves money “I book my flights and hotel using internet. I only call the travel agent if I have any further questions.” “I book my trip through travel agents. If they plan your trip, they are going to book whatever you like. I get crazy when I look on the Internet.” “Usually before I go, I book a hotel for one or two days. If I like it I stay there, else I leave the hotel.” “I check the comparison sites with the hotel what's the cheapest such as Expedia. These sites show the cheapest price for that hotel.” “The bonus of the travel agent is they can really help you. For instance, if you need documents they can help you in that.” “When I went to Australia for six weeks, we booked our tickets on the spot. It was very cheap. It was like 150 Euros per person.” “I do everything, planning a trip and all related bookings, via the Internet. When I go somewhere, I want to be free.” “When we visit Russia, or China, we can't plan things ourselves and have to leave that to an expert, a travel agent.” Source: Analysis of focus group discussions in the Netherlands

28 They prefer to book their travel individually, however, some of them, especially NSSAs prefer complete packages; at times, they book a mix of both They Opt for… Self-Made / Individual Holidays Complete Package Mixed Booking Self-made / individual holidays preferred by the Dutch, since it provides the flexibility to plan their travel – visit places at their convenience and explore new avenues – and getting cheaper prices for booking They primarily opt for these on their repeat trips to a destination The Dutch, especially NSSAs, prefer ‘complete’ or non-customisable packages They prefer packages as these are organised, well planned, provide all facilities and ensure safety They opt for packages for unknown destinations and large countries such as India, but feel that such tour packages are expensive and at times restrict their movements The Dutch also book their travel in ‘mixed mode’ – booking part of it themselves and the rest in form of a package They believe that by doing so they can save money “First time when I travelled to South Africa, I opted for package as it was an unknown destination for me and I wasn't sure whether I could do this alone. However, when I went there for the second time, I did go by myself.” “I plan the trip myself. I check the comparison sites to know which is the cheapest hotel available.” “For a country like Turkey where you don't know the way yourself, a car would be there in case you have taken a packaged tour.” “If the country is not safe, I will opt for packaged tours.” “Being a woman, I will would take a packaged tour depending on the country.” “In 2009, I combined a trip. I went to India myself and from there I got a travel agency. I booked a trip in India itself for nine days. This saved me money.” “ Even, I contacted a travel agent once I was at my destination. Price wise, that's a very smart option.” Source: Analysis of focus group discussions in the Netherlands

29 Contents SA Tourism Mandate, Key Strategic Objectives and Strategy
Overview of Dutch Tourists How many tourists come to SA How do they look for travel information How do they book How to delight them How we attract them

30 Typical day when on a leisure trip to SA
They would get up about 9 – the are “lazy” when on holiday If they have to go on safari then they are happy to get up at 5 Mostly they would prefer a shower over a bath Make sure you have long beds – they are generally tall and their feet stick out of the bed Statistically, the tallest people in the world, as measured by country are the Dutch. The average height for all adults for the Netherlands is 6 feet 1 inch (1.85 m)* Beds in a 5 star accommodation are not a problem – when you go lower – then it may be a problem For breakfast, fruit and cereal / sandwiches / eggs / they love their bread They are happy about the breakfast that they have in SA – they feel they are on holiday cause of the choice that’s available They are very big coffee drinkers From cappuccinos to espressos – the whole lot And they like their Teas – 5 roses is fine / they also like rooibos and green tea They like to try the local stuff Mornings

31 Typical day when on a leisure trip to SA
Some people will like to chill and have a hot lunch and others would like to get and sandwich Like toasted sandwiches (very similar to our toasted cheese) They are happy to grab a sandwich They like to have their big meal in the evening During their SA holiday they would drink during lunch Wine – they would typically order the house wine - they like Rose – they love it in the summer For lunch they like the white wines and rose over the red wine Beers – the love to try the local beers – lagers – drink out the glass and not pints (they are not used to pints) – they use smaller glasses No hard liquor during lunch Afternoons

32 Typical day when on a leisure trip to SA
Dinner is the big meal of the day, they will normally have an entree, main meal and dessert / they might skip one of them With dinner they will have wine / beers and water They are more likely to drink red wine (dependent on what they are eating) They feel its a good idea if the wine is recommended with the meal They are happy to try game (as they are in SA) They like the fact they can eat ostrich (It is a bit of a bragging factor when they return home) Other bragging factors are: Been to SA in general Stayed in a lodge Had a safari experience Socialising with the local people Evenings

33 Typical day when on a leisure trip to SA
Bragging cont... They are likely to put their pictures up on facebook Younger people are more likely to use Hyves Hyves not for the NSSA, WL will also share on Facebook. Facebook is growing fast in NL. NSSA’s uses facebook Evening activities They like to have a long dinner and go to a show or have dinner and a show at the same time They like to go to local café’s so they can meet the locals and talk with them over a drink. For the WL target group they like to go to local clubs so they can dance and have fun in SA style.. Make sure information on local places to go out is available to them Evenings

34 Typical day when on a leisure trip to SA
They like to talk to the staff, they want to interact with the locals, they will make the first move, they will ask questions, they are not shy There are some instances when they have a tick the box mentality and other instances where they would like to enjoy the experience at a leisurely pace If they are seeing the big five then they want to tick off what they saw If they are at the union buildings – then they want to take their time They still want to get the feeling like they are on a holiday They don't want to have too much of a hectic tour They still want time free time to relax  They do understand English As a tour guide they prefer a Dutch where possible then/ Eng / Afrikaans When communicating with them in country Dutch is preferred  Other

35 Typical day when on a leisure trip to SA
Delight them? The love it when they are on a game drive and they stop off and have a surprise drink somewhere during the game drive (Cause they didn’t expect it) Its called a borrel (5-6 in the evening before dinner) Even if they are on a bus tour – if they get chips or drinks – its much appreciated When its really hot – they like their salt – like chips They love their coffees / cappuccinos They are easy going

36 Contents SA Tourism Mandate, Key Strategic Objectives and Strategy
Overview of Dutch Tourists How many tourists come to SA How do they look for travel information How do they book How to delight them How we attract them

37 Benefits of a good partnership…
Have you registered on the SA Travel directory? Are you loading deals on Sho’t Left? Are you following SAT on Twitter and Facebook? Are you a TOMSA levy collector Have you visited the Welcome website for tips on the best way to welcome all tourists? Are you graded by the TGCSA?

38 THANK YOU Mashoto Zimba mashoto@southafrica.net (011) 895 3175
@GoToSouthAfrica @SATravelTrade @ShotLeft


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